§ 43. Sir B. Jannerasked the President of the Board of Trade when he will announce details of the plan for investment allowances in respect of leased machinery; and what arrangements will be made to consult the firms principally concerned with such leasing, including Leicester firms.
§ Mr. JayI hope to be able to make a further announcement before long. My Department have already begun a series of consultations with industry on this subject.
120W
§ 49. Mr. Gowerasked the President of the Board of Trade what is the estimated value of the new system of investment allowances to British industry in 1967–68; and what would have been the value of the previous system of investment allowances in that year had Corporation Tax not been introduced.
§ Mr. JayAlthough no precise estimate is possible I expect Board of Trade expenditure on investment grants in 1967–68 to be of the order of £200 million. This will relate to eligible investment in the first nine months of 1966. The cost to the Exchequer of giving investment allowances in respect of the same period at a rate of 8s. 3d. in the pound income tax and 15 per cent. profits tax would have been about £240 million.